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Accell Sells 50% More E-Bikes in Germany

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AMSTERDAM, The Netherlands – The 2012 halfyear sales of Accell Group NV were saved by 50% more e-bike sales in Germany and an improved geographical spread of its operations now Raleigh is included in the results.

Accell Sells 50% More E-Bikes in Germany
Accell Group

The net operating result* decreased to € 23.2 million in the first half of 2012, down 15% from the € 27.3 million reported in the first half of 2011.

“The ongoing uncertainty about economic developments is having a marked impact on consumer spending”, said René Takens, CEO of Accell Group. “In most of the European countries where we are active, the weather conditions were also very much against us in the traditionally important second quarter of the year. Despite this, we managed to increase turnover organically still; the results were lower due in particular to lower turnover in the Netherlands, exchange rate effects and extra discounts.”

Innovations
“We expect the new annual collection and, once again, a great number of innovations to contribute to an increase in turnover and net operating result in the second half of the year compared to the same period in 2011.”

“Whether this will be sufficient to result in a year-on-year increase in the full-year result will depend among others on the economic developments and the weather conditions. Based on the current state of affairs, we anticipate that the net operating result for the full year 2012 will not exceed that of 2011”, said René Takens.

Turnover & distribution
Geographic distribution
Netherlands 124 (-10%)
Germany 113 (+9%)
France 30 (-1%)
Other Europe 94 (+36%)
Outside Europe 85 (+163%)

By product group
Bicycles 332 (+14%)
Parts & accessories 104 (+42%)
Fitness 10 (+8%)

(amounts x € million)

Key developments
Accell Group booked an increase in turnover of 19% in the first half of 2012, with 2% of this increase organic. The largest part of the turnover growth came from the acquisitions of Raleigh Cycle in the second quarter of the year and of Currie Technologies in the United States and Van Nicholas in the Netherlands both in the beginning of 2012.

Lower turnover in the Netherlands and France was offset by higher turnover in Germany and Asia. Reduced consumer spending due to the uncertain economic conditions combined with very poor spring weather conditions with a lot of rain meant bicycle sales were substantially lower – especially in May and June – than expected in many European countries and the Netherlands in particular.

“Netherlands difficult”
“Especially the market in the Netherlands was very difficult for us”, said René Takens. Provisional market figures show that overall turnover from bicycle sale in the Netherlands was down by more than 20% in the first half of 2012. Turnover of Accell Group brands in the Netherlands was down approximately 13%.

The German bicycle market saw estimated growth of around 5%. In Germany, sales in Accell Group bicycle brands were up 11%. Sales of electrical bicycles in Germany were up by approximately 50%, due to the strong consumer interest in these products. The sales of the innovative sports bikes of Ghost, Haibike and Winora also increased. Turnover in bicycle parts and accessories in Germany remained stable.

Accell Group’s turnover from bicycles in France was down 11% in line with the market, as a result of lower consumer spending and delayed deliveries by suppliers. Turnover in bicycle parts and accessories in France was up by 16%.

Acquisition Raleigh Cycle
The acquisition of Raleigh Cycle in the second quarter of 2012 has also given a further boost to Accell Group’s position in the market for bicycles, bicycle parts and accessories in North America and the United Kingdom. The total number of bikes sold boosted to 942,000, from 709,000 in the first half of 2011. The acquisition will enable Accell Group to realise significant synergies in the field of logistics, sourcing in Asia, sourcing benefits through increases in scale and the intensification of distribution of the Accell Group and Raleigh Cycle brands in their respective markets.

Outlook for 2012
Based on the current market outlook, Accell Group expects an increase in net operating result in the second half of the year when compared to the second half of 2011. Whether this will be sufficient to offset the lagging results in the first half will depend among others on economic developments and the weather this autumn. Based on the current state of affairs, the company anticipates that net operating result for the full year 2012 will not exceed that of 2011. In the longer term, Accell Group expects a continuation of growth in turnover and net operating result.

*Net profit excluding one-off items (in 2012: transaction costs Raleigh; in 2011: profit from the participation Derby Cycle, the NMa charge and the costs related to the reorganisation of the fitness activities)

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